# Avoided emissions

Markdown version of https://bluegreenmaterials.com/en/avoided-emissions. Updated on 2026-11-12.

Avoided emissions are the difference between the emissions of a scenario with a solution, such as melting scrap instead of iron ore, and those of a reference scenario without it. They do not reduce your inventory: the GHG Protocol asks for them to be reported separately from scopes 1, 2 and 3, and never subtracted. For a figure to hold up it needs real weights, a chain of custody, documented factors and the method in plain view.

## What avoided emissions are

WBCSD defines them as the estimated difference in full life cycle emissions between a scenario with the solution and a reference scenario without it. The reference scenario is the most likely situation that would have occurred without the solution[^evitadas-wbcsd].

For recycling, the GHG Protocol describes them as a comparison between the emissions of processing the recycled material and those of producing the equivalent virgin material[^ghg-scope3]. WBCSD frames it the same way: one kilogram of recycled material against one kilogram of material with the same properties, made with the average reference technology[^evitadas-wbcsd].

The difference from your inventory lies in what is compared. The inventory measures how your actual emissions change against a base year; avoided emissions compare two scenarios, and one of them never happened[^evitadas-wbcsd].

## Why they are not subtracted from the inventory

- **The GHG Protocol says so**: Avoided emissions are not included in or deducted from the scope 3 inventory. They are reported separately from scopes 1, 2 and 3[^alcance3-ghg-standard].
- **They are calculated differently**: An inventory adds up emissions that happened; avoided emissions compare against a hypothetical scenario. That is why WBCSD recommends keeping them separate even when the calculation is robust[^evitadas-wbcsd].
- **They happen elsewhere**: The reduction usually happens in other actors emissions, such as the mill melting scrap instead of ore, outside your organizational boundary[^evitadas-wbcsd].
- **They do not offset**: They are not netted against the inventory and cannot be used to claim that a company or product is carbon neutral or has net zero emissions[^evitadas-wbcsd].

> Nor are they carbon credits. A credit can come from an activity unrelated to your company; avoided emissions come from your own products and services, and they are not used to offset[^evitadas-wbcsd].

## How to report them credibly

The WBCSD guidance (version 2.0, 2025) asks companies to pass three gates first and then calculate in five steps[^evitadas-wbcsd]. It is not a formal standard, but it is one of the references the GHG Protocol uses in its work on the topic[^evitadas-ghg-ami].

**The three WBCSD gates[^evitadas-wbcsd]**

| Gate | What it requires |
| --- | --- |
| 1. Climate action credibility | The company has a climate strategy with reduction targets aligned with science, or in the process of alignment, and can prove it through existing frameworks |
| 2. Latest climate science alignment | The solution has mitigation potential according to the latest climate science and is not applied to exploring, extracting, producing, distributing or selling fossil fuels |
| 3. Contribution legitimacy | The solution achieves measurable and significant reductions against a reference scenario, and those reductions are the direct result of the solution |

1. **Set the timeframe**: Year on year, or forward looking over the solution lifetime, consistent with how you report it in your inventory.
2. **Define the reference scenario**: The most likely situation without the solution.
3. **Assess both life cycles**: The life cycle emissions of the solution and those of the reference scenario.
4. **Subtract**: Avoided emissions = reference scenario emissions minus solution emissions, over the full life cycle.
5. **Validate the contribution**: Check with the result that the reduction is measurable, significant and a direct effect of the solution.

When reporting them, WBCSD asks companies to[^evitadas-wbcsd]:

- Always report them separately from the inventory, from carbon sinks and from credits or offsets.
- Not use them to claim that a company or a solution is carbon neutral or has net zero emissions.
- Describe the solution, its boundary, the timeframe approach and the life cycle emissions of the solution and the reference.
- Give an estimate or a description of the uncertainty, with assumptions, limitations and data sources.
- State whether a third party reviewed the calculation or not.
- Place them in a section of the sustainability report separate from the inventory.

## What evidence makes a claim defensible

The GHG Protocol asks companies reporting emissions avoided by recycling for data showing the material was collected, recycled and used, plus the methodology, data sources, system boundary, time period and assumptions[^ghg-scope3]. For a scrap lot it translates like this:

| Evidence | What it proves | In a scrap lot |
| --- | --- | --- |
| Real net weights | How much material was actually recycled | Net weight at origin and at destination; the lower one counts, so losses on the way stay out |
| Chain of custody | That the material reached whoever uses it | Each haul documented with its Carta Porte, from the yard to the mill |
| Documented factors | What the calculation used and where each number comes from | One factor per material family, with version, source and date; preliminary ones are declared as such |
| Process emissions | That not only the avoided side is counted | Transport subtracted as kilometers × tonnes × factor; whatever is not measured is declared as not subtracted |
| Document authenticity | That the document was not altered | A folio that a third party can verify online, without an account |

Two ideas from the WBCSD guidance help when in doubt: the **conservativeness** principle, which asks for the scenario that yields lower avoided emissions when data is missing or there is room for interpretation, and **traceability**, being able to follow the connection between the solution provider, its user and the emissions actually avoided[^evitadas-wbcsd].

## What the GHG Protocol is preparing

The GHG Protocol is developing an Actions and Market Instruments standard that will cover, among other topics, avoided emissions. Its March 2026 progress update discusses reporting them in an impact statement separate from the physical inventory, and the complete draft for public consultation is planned for 2027[^evitadas-ghg-ami].

> That document is a draft and may change. In the meantime, the published standards apply: avoided emissions go separately and are not subtracted from the inventory[^alcance3-ghg-standard].

## How the Bluegreen certificate works

Bluegreen issues a certificate per lot, with a folio, that anyone can verify online without an account. It follows the GHG Protocol: its figure is avoided emissions and is reported separately, never subtracted from an inventory.

- **Net.** CO₂e avoided by recycling, only on the weight that reached the mill (the lower of the origin and destination net weights), minus the emissions of each haul.
- **Transport with the ISO 14083 method.** Kilometers from the Carta Porte × tonnes carried × 100 g CO₂e per tonne-kilometer, the GLEC Framework v3.0 value for road freight in North America, well to wheel[^metodologia-glec].
- **What is missing, declared.** Yard operations (cutting, baling, cranes) are not measured per lot yet and are not subtracted, and the certificate says so.
- **Preliminary factors.** The current factor set is preliminary; certificates that use it are not presented as verified.
- **ISO 14064 principles.** Relevance, completeness, consistency, accuracy and transparency. Bluegreen follows them and holds no ISO certification.

With example numbers: a lot leaves the yard with 20.0 net tonnes and reaches the mill with 19.6 t. The certificate counts 19.6 t. If the only haul was 300 km with 20.0 t on board, its transport adds up to 300 × 20.0 × 0.1 kg = 600 kg CO₂e, which is subtracted from what was avoided.

See [the full methodology](https://bluegreenmaterials.com/en/impact-methodology), [carbon footprint](https://bluegreenmaterials.com/en/carbon-footprint) and [scope 3, waste and recycling](https://bluegreenmaterials.com/en/scope-3-waste-and-recycling).

## Frequently asked questions

### What are avoided emissions?

The difference between the emissions of a scenario with a solution and those of a reference scenario without it, over the full life cycle[^evitadas-wbcsd].

### Can I subtract avoided emissions from my carbon footprint?

No. The GHG Protocol asks companies not to include them in or deduct them from the scope 3 inventory, and to report them separately from scopes 1, 2 and 3[^alcance3-ghg-standard].

### How do I report emissions avoided by recycling?

In a section separate from your inventory, with data showing the material was collected, recycled and used, and with the methodology, data sources, system boundary, time period and assumptions[^ghg-scope3].

### Are avoided emissions carbon credits?

No. They cannot be used to offset or to claim carbon neutrality, and they are reported separately from any sold or tradable credit[^evitadas-wbcsd].

### What is the reference scenario?

The most likely situation without the solution. For recycling, producing the same material with the average reference technology[^evitadas-wbcsd].

### Do I need a third party to review my calculation?

WBCSD recommends it, especially if you will publish the figure, and asks companies to state in the report whether a third party reviewed it or not[^evitadas-wbcsd].

### How often are they recalculated?

WBCSD recommends recalculating every year as best practice, and also when the company, the methods or the activities change, with a change of 10% or more as a reference threshold[^evitadas-wbcsd].

## Sources

[^evitadas-wbcsd]: World Business Council for Sustainable Development (WBCSD), «Guidance on Avoided Emissions v2.0: Helping business drive innovations and scale solutions toward Net Zero (secciones 2 a 6 y preguntas frecuentes)» (2025). https://www.wbcsd.org/resources/guidance-on-avoided-emissions-helping-business-drive-innovations-and-scale-solutions-towards-net-zero/
[^ghg-scope3]: GHG Protocol (WRI and WBCSD), «Technical Guidance for Calculating Scope 3 Emissions, version 1.0, category 5» (2013). https://ghgprotocol.org/sites/default/files/2023-03/Scope3_Calculation_Guidance_0%5B1%5D.pdf
[^alcance3-ghg-standard]: GHG Protocol (WRI and WBCSD), «Corporate Value Chain (Scope 3) Accounting and Reporting Standard (tablas 5.1, 5.3 y 5.4, recuadro 5.6, capítulo 6 y sección 9.5)» (2011). https://ghgprotocol.org/sites/default/files/standards/Corporate-Value-Chain-Accounting-Reporing-Standard_041613_2.pdf
[^evitadas-ghg-ami]: GHG Protocol (WRI and WBCSD), «Actions and Market Instruments, Phase 1 Progress Update White Paper, versión 3 para solicitud de información (borrador, no es un estándar)» (2026). https://ghgprotocol.org/sites/default/files/2026-03/AMI-Phase1-WhitePaper-RFI.pdf
[^metodologia-glec]: Smart Freight Centre (GLEC), «Global Logistics Emissions Council Framework v3.0, tabla 6: North American road emission intensity values» (2023). https://knowledgeplatform.ecta.com/wp-content/uploads/2023/09/2023_GLEC_FRAMEWORK_v3.0_September.pdf